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Year in Review

Let's take a look back at just a few of our highlights in 2016 as we continue to strive for success in 2017.

2016 Highlights

Coronado Island Marriott Resort & Spa

Achieved impressive profitability, driven by an outsized operating profit margin expansion of 80 basis points on 2.7% growth in comparable hotel** RevPAR in constant US$ and aggressive asset management initiatives using technology to increase productivity.

38%

increase in diluted Earnings per Share

10%

increase in Adjusted FFO/Share*

Fairmont Kea Lani, Maui

Outstanding stock performance in 2016 based on increase in stock price from December 31, 2015 to December 31, 2016 and reinvestment of dividend.

29%

Stockholder return

The Canyon Suites

Set a new comparable hotel** RevPAR record of $177 in 2016. Occupancy levels reached nearly 79% which is the highest it's been since 2000.

$177

Record comparable  hotel RevPAR

The Camby

Returned $814 million in capital for our stockholders through $596 million of dividends and $218 million of stock repurchases completed at a significant discount to estimated net asset value.

$814

Million in  Capital Returned

Hyatt Regency San Francisco Airport

Successfully advanced on four major redevelopment projects introducing energy efficiencies and high-tech customized amenities at Hyatt Regency San Francisco Airport, Denver Marriott Tech Center, The Phoenician, A Luxury Collection Resort and Marriott Hall at Marriott Marquis San Diego Marina.

4

Value Enhancements

The Don CeSar

Acquired one of the "Grand Dame" Floridian resorts on one of the best beaches in the country, the 347-room Don CeSar in St. Pete Beach for $214 million, subsequent to year end.

347

Number of Rooms in New Acquisition

Marriott Hall

Named to CDP's Climate A List, which recognized the top 193 of more than 5,500 respondents for demonstrating the highest level of climate change leadership.

CDP

Climate A List

Financial Flexibility

Maintained a fortress balance sheet, which is a key competitive advantage. The Company's long-term unsecured debt is investment-grade rated and only one of the Company's hotels is encumbered by mortgage debt.

Dispositions

Disposed of 11 assets worth approximately $670 million (includes one Q1 2017 sale). The combined average 2015 RevPAR was $112 million.

*Adjusted Funds From Operations ("FFO") per diluted share is a non-GAAP financial measure within the meaning of the rules of the Securities and Exchange Commission. See the earnings press release for a reconciliation to the most directly comparable GAAP measure, and a discussion of the limitations on the use of this supplemental measure.

**See the earnings press release for a description of what we consider to be our comparable hotels for 2016.